Following a 30 per cent surge in lending to self-employed customers1, Westpac is rolling out changes this week to make it simpler and faster for more self-employed applicants to get a home loan.
Leading the update is a new one year income assessment option - halving the income paperwork required from two years. This means eligible customers need to provide fewer documents, helping to speed up application assessments compared to the standard two year process.
"More than two million Australians work for themselves, and we've seen continued growth in self-employed customers coming to us for tailored support with getting a home loan," said James Hutton, Managing Director Mortgages at Westpac.
"Self-employed people often have different needs and challenges in accessing home finance because their income can be more variable, or require additional verification to traditional payslips.
"By introducing a one year income assessment, we are making the home loan process faster and simpler by requiring less documentation, helping more self-employed Australians to secure their home or investment property sooner. Additionally, reviewing just the latest year of income can help with providing a clearer representation of recent business performance and borrowing capacity.
"This is also backed by the expertise and experience of our home lending teams, who understand the unique needs of self-employed applicants and can guide them through the home lending process," Hutton said.
Tim Nelson, a home builder based on Sydney's Northern Beaches, has twice been through the home loan process - most recently in March - and welcomed the changes aimed at the specific needs of self-employed Australians like him.
"The process did involve a stack of paperwork. Any change that cuts down the time and admin for business owners like me is going to mean more time for what really matters - delivering for my clients, building my business and supporting my family," said Mr Nelson.
According to the Australian Bureau of Statistics, labour income from self-employment rose by 5.5% to $29.5 billion in the March 2025 quarter2. This growth reflects a broader shift in the workforce, with more Australians embracing self-employment amid changing economic conditions, digital work models, and evolving tax policies.
Westpac's Home loans for self-employed and business owners hub is a one stop shop for the latest options available for a simpler home or investment property loan experience, including the new one year income assessment option.
